Hit the wallet directly. Even the safe. This is the goal of the European Union, which, after the invasion of Ukraine on February 24, 2022, imposed numerous sanctions against Russia. Among them are the freezing of assets and a ban on entry into the territory of 680 people, including the President of Russia. , Vladimir Putin and 53 persons. On Wednesday, March 2, 22 more people were added to this black list, the European Union indicates.
These measures were initially introduced in March 2014 and significantly tightened at the end of February 2022. They are valid until March 15, 2022 and are renewed every six months. But what are they really and how do they apply? Franceinfo sums up.
Asset freeze that could turn into forfeiture
A “freeze” consists of freezing bank accounts and other financial assets, as stated on the website of the European Data Protection Supervisory Authority. The freezing of funds, as the Autorité des Marchés financiers explains, aims to “prevent any movement, transfer, alteration, use or manipulation of funds that could change their volume, amount, location, ownership.” So once frozen, it is impossible to sell property, transfer or withdraw money, sell shares. “The fact that property or bank assets are frozen does not mean that we are seizing property,” reminds Olivier Dusso.
“If we want the freeze to be effective, we need to know what is frozen. This allows us to clearly distinguish what belongs to the people who are subject to sanctions. If fraud is detected during the freeze, we open procedures,” Minister Olivier Dussaud explained. Delegate for Public Accounts to the Minister of Economy, Franceinfo, Saturday 5 March.
But the sanctions will not be limited to freezes, warned Bruno Le Maire, economy minister, a guest on Franceinfo on Tuesday, March 1. “We’re going to make sure it’s not just an asset freeze, it’s also an asset freeze.”
However, in the event of confiscation, notes Bruno Le Maire, “you lose ownership of this apartment, this yacht or this house.” But this seizure can only be made “within the framework of criminal proceedings, after which final confiscation can be carried out,” the specialized analytical center “Club of Lawyers” clarifies. In contrast, an asset freeze requires only an administrative procedure.
French asset search “task force”
Bruno Le Maire did not specify how many people affected by these sanctions are in France. But he did mention a “task force” (an intervention group) set up “to identify all Russian oligarchs” in France.
Several dozen agents and up to several hundred, including those punctually mobilized throughout the territory, can be involved, for example, to carry out a seizure, the AFP Ministry of Economy specifies. Purpose: to identify financial assets (bank accounts, investments, etc.) and property (real estate, boats, etc.) belonging to more than 500 individuals and organizations under European sanctions.
In France, the first yacht stopped at La Ciotat.
France has blocked five boats so far: four cargo boats and one yacht. Yachts, a symbol of the vast wealth of high-ranking Russian political and economic leaders, are part of the property they own abroad.
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The first immobilized yacht is L’Amore Vero, valued at 110 million euros, seized on Thursday in the French port of La Ciotat (Bouches du Rhone). The 86-meter megayacht belongs to a company associated with the head of the Russian oil giant Rosneft, Igor Sechin. Considered one of the leaders of the “siloviki” clan, which refers to high-ranking officials from the special services, Igor Sechin has been the faithful master of the Kremlin since the 1990s.
Abroad detentions and extension of sanctions to the family
In Italy. The first yacht, Lady M, was hijacked on Friday, government officials said. It belongs to Russian steel magnate Alexei Mordashov. This close friend of Vladimir Putin came under EU sanctions. The cost of the ship is estimated at 65 million euros. According to the Italian newspaper La Stampa (article in Italian), a second yacht, the Lena, owned by Gennady Timchenko, the billionaire co-founder of a goods trading company (Guvnor), was hijacked in San Remo in the northwest of the country.
UNITED KINGDOM. In addition to ending the golden visa system, which allowed very wealthy investors, especially Russians, to quickly obtain residence permits, the assets of Russian billionaires were frozen. Such is the case with Alicher Usmanov in Uzbekistan, who has already been sidelined by English football club Everton. Former Deputy Prime Minister Igor Shuvalov, head of the Russian development bank VEB, is also concerned. They are blocked from accessing the British financial systems as well as the American ones.
IN USA. The list of individuals subject to the asset freeze was expanded on Thursday. It now extends to my family members of each person concerned so that they do not transfer their property to their loved ones. Among them are Nikolai Tokarev, CEO of Transneft, a heavyweight in the oil and gas sector, and Sergei Chemezov, head of the Rostec military-industrial conglomerate.
Joe Biden vowed Tuesday night in a speech to Congress to track down Russian oligarchs’ “ill-gotten gains” and seize their “yachts, luxury apartments and private jets.” The US Justice Department on Wednesday created a team of investigators responsible for prosecuting “corrupt Russian oligarchs” and those helping them circumvent sanctions and seize their luxury goods.